When two of their three children had moved out and were living on their own, Anthony and Kristen Papucci knew it was time to downsize. They also knew they wanted to stay in Brookfield, Conn., where they had owned a four-bedroom house since 2000. They liked the small-town feel, and they especially liked the proximity to Candlewood Lake.

Last summer, Ms. Papucci, who works as a banker in Ridgefield, Conn., and Mr. Papucci, a director at a media company in Manhattan, bought a 1,900-square-foot, three-bedroom ranch house in Candlewood Shores, a private lakeside community. The couple, both 51, paid $260,000 for the house, which was built in 1960 on a third of an acre. Now, they and their 15-year-old son enjoy lake views from the kitchen and living room. “When I wake up in the morning, I feel like I’m on